Dear Mary: We need to put a new roof on our house. We were going to get a home equity loan to do it, but now we are leaning toward putting it on a credit card so that all we need to borrow is the cost of the roof. Plus the interest rate will be lower for at least one year. We actually have the money in a savings account to cover the roof's expense, but we are hesitant to remove that money because of the current economy. It is possible my husband will receive a pay cut soon. What is your opinion? -- Deb R., e-mail

Dear Deb: You've left out some very important information. How much will the roof cost? How much do you have in your contingency fund (savings)? How much of a monthly payment are you certain you can handle?

If a pay cut is on the horizon for your husband, the last thing on earth you want to do is to load up with new debt. Borrowing against your home's equity would result in a big new payment each month. If you are unable to keep up with that equity loan's payment, your home will be at risk of foreclosure.

And I'm not at all keen on you paying for this with a credit card. That, too, would put you into a risky position.

Are you certain this roof replacement is mandatory at this time? With some strategic patching, is there a way you could wait another year? That would give you time to save like mad so you could pay for the work in cash, without depleting your reserves. Or could you do half the work now and the other half in a year?

If replacement is mandatory right now, my advice is to pay for this expense from your savings -- making certain you have found the best price for the quality of roof you can afford. Then immediately begin to make payments back to yourselves each month. This will take a lot of discipline, but it's the best way to avoid new debt and rebuild your savings quickly.

Dear Mary: I have a scanner I can't even get rid of on www.Freecycle.org. And giving it to Goodwill probably would not be a very charitable act. Do you know of any way to recycle obsolete computer equipment and electronics? -- Cathy S., e-mail

Dear Cathy: This likely qualifies as hazardous waste or "e-waste" because of the electronic components. Call your local sanitation company. Most of them these days have a center where you can drop off items that are considered hazardous and cannot be disposed of like ordinary trash. You may discover that your city, like mine, will pick up such items, provided you call ahead and make the proper arrangements.

Another option is to Google "dispose scanner" to see whether there is a donation center in your area that will take it off your hands for a good cause. You just never know what you'll find!

Do you have a question for Mary? E-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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